SMART EUROCITIES: FUNDING AND FINANCING

EU LIGHTHOUSE SMART CITIES PROJECTS HTTP://WWW.SLIDESHARE.NET/ASHABOOK/URBAN-EUROPE

SMART POLIS MUNICIPAL PLATFORM IS TO COLLECT DATA FROM SMART DEVICES AND SENSORS EMBEDDED IN ITS STREETS AND ROADWAYS, POWER AND WATER GRIDS, BUILDINGS AND

OTHER CITY ASSETS, SHARING DATA VIA SMART COMMUNICATIONS NETWORKS, WIRED, WIRELESS AND MOBILE, USING SMART SOFTWARE FOR DELIVERING INTELLIGENT INFORMATION

AND SERVICES: ONLINE TAXES AND PERMITS, UTILITY BILLS, PAYMENTS, GIS DATA ON ASSETS AND UTILITIES (UNDERGROUND CABLES, PIPES, WATER MAINS), TRAFFIC MAPS, CRIME

REPORTS, EMERGENCY WARNINGS, CULTURAL EVENTS, ETC.

HTTP://WWW.SLIDESHARE.NET/ASHABOOK/SUSTAINABLE-CITY

EU, CYPRUS

15 JUNE 2014

SMART CITIES GLOBAL INITIATIVE IN

EUROPE EUROPEAN INNOVATION PARTNERSHIP ON SMART CITIES AND COMMUNITIES has completed its invitation for commitments for

Building Smart Green Cities and Intelligent Communities, the places of growth, intelligence and innovation, high-quality jobs and sustainable development.

The “Smart Cities Global Initiative” in Europe aims to transform committed Eurocities into intelligent green urban areas:

environmentally sustainable, inter-connected, instrumented, innovative, and integrated, regionally and globally attractive for businesses, citizens, visitors

and investors.

SMART Eurocities are to be managed by the urban “brains:, intelligent city cloud platforms, managing communal resources, assets, processes and

systems: Urban Land and Environment, Roads and Transportation, Energy networks and Utilities, ICT networks and fiber telecom infrastructure, Public and

residential buildings, Natural Resources, Water and Waste management, Social infrastructure, Health and safety, Education and culture, Public

administration and services, Communities and Businesses.

Being in line with the EU Strategy 2020, the SMART Eurocities Projects are to utilize the EU Multiannual Financial Framework 2014-2020, 7-Years

Planning, Strategies, Policies and Regulations, Funds, Programs and Projects, all innovative funding opportunities, schemes, and initiatives, as well as

local government incentives for smart urban growth and sustainable redevelopment. Financing could follow the Public-Private-Citizen Partnership business

models, and be shared by the private firms, investors and municipal government. http://eu-smartcities.eu/content/show-world-you-are-smart-city

EUROPEAN COMMISSION’S SMART CITIES AND COMMUNITIES INITIATIVE:

NEW SMART CITY AGENDA FOR EUROCITIES

Too much of the smart city agenda so far has been led by producers; competing corporations

offering their own technology to cities as an ostensibly comprehensive solution to every urban problem.

Solutions must work within the complex urban environment of integrated planning, policy-making and

delivery, taking advantage of the opportunities for connectedness and systems integration.

An integrated approach addressing social, economic and environmental issues together will

remain important in this respect.

It is vital for future take-up of technologies that we can demonstrate the benefits to citizens,

such as the potential to improve quality of life, foster social innovation and connect and empower citizens.

City governments must have a central role in the initiative’s strategy and projects.

City authorities are not simply facilitators for or customers of industry; rather they should be

acknowledged as leaders and innovators in their own right.

“EUROCITIES Statement on Smart Cities and Communities Communication”.

Smart Cities Global Initiative in Europe is meeting the above concerns, thus enriching the EC’s

Smart Cities Initiative:

http://eu-smartcities.eu/content/show-world-you-are-smart-city

SMART EUROCITIES

Azamat Abdoullaev 2014

SMART ECO CITIES AND REGIONS: STRATEGY FOR SMART, SUSTAINABLE AND INCLUSIVE GROWTH

FUTURE CITY GROWTH STRATEGY EU FUNDING 2014-2020: THEMATIC OBJECTIVES: KEY POLICY

OBJECTIVES, FUNDING PRIORITIES AND EX ANTE

CONDITIONALITIES

I. Smart Growth: developing a communal,

urban and regional economy based on

knowledge and innovation (INNOVATION;

EDUCATION; DIGITAL SOCIETY).

II. Sustainable Growth: promoting a more

resource efficient, greener and more

competitive district and city (CLIMATE,

ENERGY AND MOBILITY;

COMPETITIVENESS).

III. Inclusive Growth: fostering a high-

employment communal, urban and regional

economy delivering social and territorial

cohesion (EMPLOYMENT AND SKILLS;

FIGHTING POVERTY).

IV. http://www.slideshare.net/ashabook/urban-europe

1. RESEARCH, TECHNOLOGICAL DEVELOPMENT AND

INNOVATION (Digital City, RIS3 Strategies)

2. INFORMATION AND COMMUNICATION TECHNOLOGIES

(Digital City, RIS3 Strategies)

3. COMPETITIVENESS OF SMES, THE AGRICULTURAL SECTOR

(FOR THE EAFRD) AND THE FISHERIES AND AQUACULTURE

SECTOR (FOR THE EMFF, Social City)

4. A LOW-CARBON ECONOMY IN ALL SECTORS (Eco City)

5. CLIMATE CHANGE ADAPTATION AND RISK PREVENTION AND

MANAGEMENT (Eco City

6. PROTECTING THE ENVIRONMENT AND PROMOTING

RESOURCE EFFICIENCY (Eco City)

7. SUSTAINABLE TRANSPORT AND KEY NETWORK

INFRASTRUCTURES (Eco City)

8. EMPLOYMENT AND LABOUR MOBILITY (Social City)

9. SOCIAL INCLUSION AND COMBATING POVERTY (Social City)

10. IEDUCATION, SKILLS AND LIFELONG LEARNING (Social City)

11. INSTITUTIONAL CAPACITY AND ENSURING AN EFFICIENT

PUBLIC ADMINISTRATION (Social City)

To Reach the Overall Goals of the EU 2020 Strategy for Smart,

Sustainable and Inclusive Growth

SMART EUROCITIES

Azamat Abdoullaev 2014

FUNDING FOR EU SUSTAINABLE CITIES:

ECO POLIS FINANCING

Smart Cities and Communities European Innovation

Partnership

(ESIF) European Structural and Investment Funds 2014-2020

Horizon 2020

LIFE+

URBACT

INTERREG EUROPE

EU Cities Adapt

(EIB) European Investment Bank (Investment Loans, financial instruments to eligible cities at favorable

terms, in the form of reduced interest rates and potentially reduced collateral requirements, extended loan maturities and grace periods

(EIF) European Investment Fund (Investment Loans; financial instruments to eligible cities at favorable

terms, in the form of reduced interest rates and potentially reduced collateral requirements, extended loan maturities and grace periods)

SMART EUROCITIES

Azamat Abdoullaev 2014

EIB-EIP SMART FUNDING SCHEME: PROMOTERS AND BENEFICIARIES

“Smart Cities & Sustainable Development” Program in Europe

Promoter – Financial Intermediary

European Commission & European Investment Bank

Intermediary Banks of Smart Members States

High-Level Group (EIP on Smart Cities and Communities)

Performer

EIP on Smart Cities and Communities (Action Clusters)

Consultant: EIS Encyclopedic Intelligent Systems, “Smart City Global Initiative” Promoter

Beneficiaries

European Cities and Communities committed as Founding Members of EIP on Smart Cities and Communities

Location: Europe

Description

The Program is aimed to secure the EU’s 2020 objectives by developing/redeveloping smart, sustainable and inclusive cities

and communities in Europe.

It involves the financing through a Framework Loan of large municipal investments around the concept of pan-European "smart

cities & sustainable development", and specifically in the domains of sustainable urban regeneration, ICT, renewable energy,

energy efficiency, transportation and mobility, to be carried out by local authorities, utilities, smart SMEs, and other founding

members of the EIP on Smart Cities and Communities providing services to authorities over the period 2014-2017 for a total

investment amount in excess of EUR 10 bn.

http://eu-smartcities.eu/blog/eib-eip-smart-cities-financing

SMART EUROCITIES

Azamat Abdoullaev 2014

EIB-EIP SMART FUNDING SCHEME: OBJECTIVES AND BENEFITS

Objectives

75% of Europeans spend their lives in towns and cities, with 85% of GDP created in urban areas, 80% of all energy consumption and 75%

GHG emissions, while facing increasing economic, social and environmental challenges.

The Program supports an innovative integrated urban development approach by the committed European cities and communities of the

concept of "smart cities & sustainable development", underpinning large investments carried out mainly at city/regional level with the

common purpose of improving environmental sustainability, urban and natural environment, ICT, mobility, energy efficiency, urban

economy and social cohesion.

Promoting “Smart City Global Initiative” in Europe, the Program prioritizes holistic policies and strategies, comprehensive planning and

management, and urban intelligent governance platform, integrating infrastructure assets and processes across Energy, ICT and

Transport, to keep a global leadership in the sustainable development of cities and communities.

Sector(s)

Urban development; Regional Development; Innovation; Environmental Sustainability; Energy; SMEs

Proposed EIB finance (Approximate amount)

EUR 5 billion

Total cost (Approximate amount)

EUR 10 billion

Benefits

Developed through collaboration between the European Investment Bank (EIB) and the EIP on Smart Cities and Communities, the "Smart

Cities & Sustainable Development" innovative investment program is aimed at assisting and providing financial support to urban and rural

communities committed to the EIP’s Strategic and Operational Implementation Planning, with its focus areas and priority actions in

framework policies and regulations, integrated urban planning and management, citizen focus, integrated intelligent infrastructures

across Energy, ICT and Transport, urban mobility, sustainable districts and built environment.

Under this program, the public authorities, committed to integrated smart urban policies, are to benefit from preferential rate loans for the

implementation of the "Smart Cities" projects up to a total of EUR 10bn half of which from the EIB and the other half from the EC and local

intermediary banks, which major cities committed as founding partners to the Smart Cities EIP.

http://eu-smartcities.eu/blog/eib-eip-smart-cities-financing

SMART EUROCITIES

Azamat Abdoullaev 2014

EIB’S SMART CITIES COMMITMENT

The EIB, together with Belfius Bank, is launching the "Smart Cities and Sustainable

Development” Program in Belgium, EUR 400m scheme, thus smartly committing to one

Member State.

Supporting the pan-European “Smart Cities & Sustainable Development” Program, the EIB is to

commit to the smart urban development investment policy in all Europe. The pan-European

smart city budget could start from EUR 10bn Europe, with additional finances coming from the

disproportionately largely funded and low-efficient ERC programs.

Still, EUR 10bn EIB-EIP Scheme is relatively modest considering the smart city market

projections to exceed $ 1 trillion by 2016 and China’s future “smart cities” allocations of 2

trillion yuan ($322 billion) for more than 600 cities nationwide.

Again, in Russia, the greenfield intelligent city of Skolkovo, occupying about 360 hectares, is to

cost about $ 16 bn, but risking to fail for lack of innovation city strategic planning and urban

intelligence platform.

Considering Belgian smart cities budget of 0.4bn, the Big Europe smart cities (Germany, UK,

France, Italy, and Spain) could cover half of a smart budget, while the rest could go for the

smart cities of other Member States.

SMART EUROCITIES

Azamat Abdoullaev 2014

SMART CITY FINANCING SOURCES

Smart City Development Partnership can generate capital internally, through their own net operating cash

flows, or externally through equity capital markets, bond markets or the banking system, or via direct and

indirect financing.

Private Finance Mechanism Hierarchy:

Senior secured debt

Senior (unsecured) debt

Subordinated debt (mezzanine financing)

Equity financing

Public Finance Mechanism:

Grants to support high upfront costs for innovative capital projects, to increase the FRR on

investment and leverage additional resources through requirements on cofinancing/matching funds.

Interest subsidies (i.e.) Soft loans entail: • Extended payback periods; • Low or zero interest rates; • Short-

term interest deferral periods; and/or • Inclusion of payback grace period.

Revolving funds offer loans that can be repaid with the realized revenue

and then it can be reinvested in new projects in the same area.

Financial instruments, combinations of grants and loans

SMART CITIES STAKEHOLDER PLATFORM. FINANCE WORKING GROUP

GUIDANCE DOCUMENT. FINANCING MODELS FOR SMART CITIES

SMART EUROCITIES

Azamat Abdoullaev 2014

SMART CITY FINANCING MODELS

Government-based financing tools

1. General obligation bonds; 2. Revenue bonds

3. Industrial revenue bonds; 4. Green bonds

5. Qualified energy conservation bonds

6. Social impact bonds; 7. Public benefit bonds

8. Linked deposit programs; 9. Energy efficiency loans

10. Property-Assessed Clean Energy Programs; 11.

Greenhouse emissions allowance auctions;12. User fees

Development exactions

1. Developer dedication requirements; 2. Tap fees

3. Linkage fees; 4. Impact fees

Public-private partnerships

Private fund leveraging options

1. Loan Loss Reserve Fund (LRF); 2. Debt service

reserves; 3. Loan guarantees; 4. On-bill financing; 5.

Pooled bond financing; 6. Pooled lease-purchasing

finance; 7. Value capture; 8. Tax increment financing

Philanthropic non-profit foundations;

International NGOs, World Bank, OECD, CIF;

Combining financial tools and multiple funding sources

SMART CITIES FINANCING GUIDE: Expert analysis of 28

municipal finance tools for city leaders investing in the

future. Smart Cities Council

Financial System: Direct and Indirect Financing

SMART CITIES STAKEHOLDER PLATFORM. FINANCE WORKING

GROUP. GUIDANCE DOCUMENT. FINANCING MODELS FOR

SMART CITIES

SMART EUROCITIES

Azamat Abdoullaev 2014

SMART CITY FINANCING CHALLENGES

The smart cities financial challenges:

f) High risk perception for innovative solutions and energy efficiency measures;

g) Uncertain energy prices and policy uncertainty on fossil fuel prices;

h) Large investment volumes required;

i) Long term to maturity/profitability;

j) Limited public funding capacity: high public deficits municipalities and incapacity to raise funding from

capital markets

To attract the necessary capital for investments in cities solutions have to be found to:

e) Reduce real and perceived risks of the investments;

f) Attract long term finance from specialised institutions (i.e. pension funds);

g) Develop project aggregation mechanisms to create bankable and sizeable investments with reduced

transaction costs;

h) Develop off balance sheet investment systems with private mechanisms (development of single purpose

vehicles and PPPs)

Smart Cities, as large scale innovative and costly changes, involve both financial engineering and socio-

economic values, measured as internal rates of return (IRR) and economic rates of return (ERR), respectively,

which might oppose each other.

SMART CITIES STAKEHOLDER PLATFORM. FINANCE WORKING GROUP. GUIDANCE DOCUMENT. FINANCING MODELS FOR

SMART CITIES

SMART EUROCITIES

Azamat Abdoullaev 2014

SMART CITY CHALLENGES, RISKS, AND SOLUTIONS

Technology risk

Operational risk

Construction risk

Market demand risk

Policy risk

Finance risk

The public sector can offer particular financial

instruments to leverage private financing:

Grant co-financing: to reduce the volume of investment

form the private sector and thus their potential losses.

Equity support: offering equity to private developers

Guarantees to banks and private investors: sheltering

the private sector for first losses of projects

Operational risks can be mitigated with the appropriate

investment in skills; Technical assistance is key to

reduce this risk; Construction risk can be mitigated

through subordinate loans and guarantees, etc.

The ERR to the smart city is usually high (living

standards and health benefits), while the FRR could be

low, then public assistance instruments are required to

compensate the private financiers. The more innovative

the solution, the more difficult to raise finance.

The smart cities financial challenges:

f) High risk perception for innovative solutions and energy

efficiency measures;

g) Uncertain energy prices and policy uncertainty on fossil

fuel prices;

h) Large investment volumes required;

i) Long term to maturity/profitability;

j) Limited public funding capacity: high public deficits

municipalities and incapacity to raise funding from capital

markets

To attract the necessary capital for investments in cities

solutions have to be found to:

e) Reduce real and perceived risks of the investments;

f) Attract long term finance from specialised institutions

(i.e. pension fun ds);

g) Develop project aggregation mechanisms to create

bankable and sizeable investments with reduced

transaction costs;

h) Develop off balance sheet investment systems with

private

mechanisms (development of single purpose vehicles and

PPPs)

SMART CITIES STAKEHOLDER PLATFORM. FINANCE WORKING

GROUP. GUIDANCE DOCUMENT. FINANCING MODELS

SMART EUROCITIES

Azamat Abdoullaev 2014

MULTIANNUAL FINANCIAL FRAMEWORK (MFF) 2014-2020:

FINANCIAL ALLOCATION FROM ESIF

Cohesion Policy

Structural Funds:

European Regional Development

Fund (ERDF),

European Social Fund (ESF)

Cohesion Fund (CF)

Common Agricultural Policy

European Agricultural Fund for

Rural Development (EAFRD)

Common Fisheries Policy

European Maritime and

Fisheries Fund (EMFF)

A total amount of … is allocated to each Member

State for the 2014-2020 programming period from

the European Structural and Investment Funds

(ESIF), as follows:

Structural Funds (ERDF & ESF), Cohesion Fund

and Youth Employment Initiative: €

European Agricultural Fund for Rural Development:

€

European Maritime and Fisheries Fund: €

Total Budget: € for 2014-2020 (Operational

Program for Cohesion Policy)

Percentage of Subsidy/Co-Financing: Up to 95% of

the total cost.

Eligibility for Participation:

Central Government

Local Authorities

NGOs

Private Bodies

SMART EUROCITIES

Azamat Abdoullaev 2014

PARTNERSHIP AGREEMENT AND OPERATIONAL PROGRAMS

The EC-Member State Partnership Agreement

(PA) is to secure the synergy and coordination

between the ESIF Funds supporting:

the Cohesion Policy (Structural Funds and

Cohesion Fund),

the Common Agricultural Policy (European

Agricultural Fund for Rural Development)

the Common Fisheries Policy (European

Maritime and Fisheries Fund)

Strategic Objectives, or National Priorities

• Supporting the restructuring and

strengthening the competitiveness of economy,

• Upgrading human resources, promoting

employment and social cohesion,

• Protecting the environment and promoting the

efficient use of resources

Promotion of sustainable local development:

Territorial cohesion, Urban and Rural

Development

The Partnership Agreements should be officially submitted to

the European Commission for approval on April 2014

The Operational Programs (OP) specify in more detail the

PA through specific priorities and indicative interventions.

The following programs will be prepared:

(a) Two Operational Programs for Cohesion Policy Funds,

(b) The Rural Development Program

(c) The Operational Program for Fisheries and Aquaculture.

There are be two Operational Programmes for Cohesion Policy:

1. the OPs for Competitiveness and Sustainable Development,

which will be co-financed by the ERDF and the CF, with an EU

contribution of € …, interventions will be promoted for the

enhancement of competitiveness of the economy through the

promotion of investment in the sectors of Research and

Development and Information and Communication

Technologies, interventions in the sectors of Environment,

Energy and Transport, as well as interventions for the promotion

of integrated sustainable urban development in deprived areas.

2. the OP for Employment, Human Resources and Social

Cohesion, which will be co-financed by the ESF and the Youth

Employment Initiative, with an EU contribution of € …,

interventions will be promoted for the promotion of employment,

lifelong learning and social cohesion

The Cohesion Policy Programs should be officially submitted to

the EC by July 2014.

The approval of the European Commission is expected by the

end of 2014.

SMART EUROCITIES

Azamat Abdoullaev 2014

ESIF: WHO TO APPLY

Local Authorities: Urban and Rural Development and other

projects contributing to the thematic objectives (environment,

energy, etc.)

NGOs: Promotion of Social Economy and participation in the

implementation of projects – Cooperation with Local Authorities

and other bodies

Universities – R&D&I, Partnerships with local authorities,

industries and enterprises and other organizations

Enterprises: Grant schemes, loans and other financing

instruments for improving competiveness, innovation,

employment schemes, etc.

SMART EUROCITIES

Azamat Abdoullaev 2014

SMART EUROCITIES Azamat Abdoullaev 2014

FUTURE CITY ARCHITECTURE

Inclusive Social

Human

City/

Town/

Community

SMART SUSTAINABLE CITY i-City Platform Smart City Command and Control Center

EcoSustai

nable City/

Town/

Community

Smart

Digital City/

Town/

Community

Physical Capital Natural Capital Ecosystems Natural Resources Renewables/RES Eco Technologies Green Infrastructure Eco-Urbanization Green Society ECO-SUSTAINABLE GROWTH

Information/Digital Capital Smart Mobility , Smart Services ICT Infrastructure, OTN, Optical Networks , NG Broadband 3DTV, HDTV, CC, Intelligent Clouds Internet of Things, u-Computation Digital/Cyber Society TECHNOLOGICAL/SMART GROWTH

Social/Human/I-Capital Innovation Ecosystems Smart Living Smart Economy Knowledge Infrastructure i-Industry Smart Governance Equity, Wellbeing, QoL Knowledge Society SOCIAL/INCLUSIVE GROWTH

SUSTAINABLE URBAN TRINITY of

Wellbeing, Quality of Life and Sustainable Growth

SUSTAINABLE DEVELOPMENT AND REDEVELOPMENT PROJECTS

Digital or Cyber City Urban Projects, new and retrofitting, Cloud-Based

Intelligent City Management Platform, advanced ICT Networks, Optical

Internet Backbone, Municipal Wireless (WiFi) Communication Networks with

open service model (tourist areas to start), smart ICT services for citizens (i-

government, i-learning, i-health, i-commerce, etc)

Clean/Green Eco City Projects, Green Infrastructure, Transport, Buildings,

Intelligent Energy Networks (green homes, neighborhood, districts; solar

gardens and farms)

Intelligent/Inclusive/Human-Centered City Projects/ to nurture social

inclusion, creativity, innovation, and talents, investing in education, arts and

culture, organizing high quality cultural and creative events and

performances, attracting talented professionals and international

knowledge, cultural, and multi-media industries

SMART EUROCITIES

Azamat Abdoullaev 2014

TOMORROW’S EUROCITIES: REDEVELOPMENT PROJECTS UNDER THE EU FUNDING SCHEMES

Smart City Governance Platform (Urban Intelligent Management System)

■ Transport, including public transport, intelligent transport systems and parking, GIS;

■ Environment/Energy, Environment Management, Energy networks, such as smart

grids, smart meters, smart energy-efficient buildings;

Telecom networks, all-IP core networks, ultra-high broadband access convergence

networks, advanced services and applications, such as FTTx, GPON, LTE, multi-play

services, urban traffic management, building automation, lighting and energy

management, access and security networks, location-based services, trust and

security platforms, multimodal user Interfaces, Anytime/any place Ubiquitous

connectivity, the Internet of Things between machines (multiple devices and sensors

and actuators) and humans, M2M and M2M2H (real time data and control)

■ Municipal projects, city administration and public utilities, waste management,

modernisation of water systems, smart lighting systems, public safety and city

resilience programms;

■ Public Services, Education and Health, Safety and Security, and Social Networking,

Economic Stimulus projects

SMART EUROCITIES Azamat Abdoullaev 2014

GLOBAL CITIES INITIATIVE IN EU: SMART EUROCITIES DEVELOPMENT PROGRAM

CREATING OVERALL SMART ECO CITY STRATEGY: Intelligent Community Design, Setting a Comprehensive Intelligent

Community and Smart City Agenda/ Strategy/ Vision/Roadmap/MasterPlanning/Technological Platform

Scope: Smart City Branding & Full Sustainability Report & Total Package of the Next-Generation Urban Development

SMART GREEN EUROCITY PROJECTS MANAGEMENT PLANNING (Work Breakdown Structure and Project Organization

Structure)

Scope: Smart Eco City Program;

DEVELOPING SMART CLOUD CITY MANAGEMENT PLATFORM (MUNICIPAL CONTROL AND COMMAND CENTER)

Scope: Urban Management System; Smart Cloud Computing Urban Platform

Delivery Date: December 2014

ORGANIZING SMART EUROCITY SEMINARS FOR COUNCIL MEMBERS, MUNICIPAL STAFF, TECHNOLOGY UNIVERSITY,

INVESTORS AND OTHER STAKEHOLDERS

ORGANIZING SMART EUROCITY STAKEHOLDER PLATFORM

ORGANIZING SMART EUROCITY INVESTORS SUMMITS (Local, European, International; Programs and Prospects)

LIGHTHOUSE SMART CITY PROJECTS under EU Multiannual Financing Framework 2014-2020

EU Horizon 2020 (Lighthouse Projects)

EU ESIF Funds 2014-2020 (Integrated Urban Development Platform)

Delivery Date: 3-7 years according to the projects terms and conditions

Funding for Sustainable Cities and Green Initiatives: “Using EU funding mechanism for smart cities”

http://eu-smartcities.eu/content/show-world-you-are-smart-city

http://ec.europa.eu/environment/europeangreencapital/about-the-award/policy-guidance

SMART EUROCITIES Azamat Abdoullaev 2014

“SMART CITY” TEAM AND BUSINESS STAKEHOLDERS: CORE MEMBERS AND PROSPECTIVE PARTNERS

Smart City “X” Consortium

Smart City Management Team:

Municipal Mayor

City Council Members

Staff (urban planners, architects,

engineers)

International Team:

EU Smart Cities Platform

Stakeholders (Action Clusters)

Dr Azamat Abdoullaev,

Coordinator (Urban Europe 2020;

Smart Cities Global Initiative) http://eu-smartcities.eu/content/become-smart-nation-build-your-

brand-name

http://eu-smartcities.eu/content/show-world-you-are-smart-city

EUROPEAN PARTNERS

European Innovation Partnership on Smart Cities

and Communities

PROSPECTIVE BUSINESS PARTNERS

EIS (I-World Concept and Smart Sustainable City Strategy)

IBM (Smarter Planet Initiative)

Cisco Systems (Smart + Connected Communities)

European Innovation Partnership (Smart Cities and

Communities)

Siemens (Smart Mobility Initiative)

Huawei (Smart City Initiative)

Orange (France Telecom) (Smart City Initiative)

Alcatel-Lucent (Smart City Initiative)

Microsoft (Intelligent City Platform)

Oracle (Intelligent Government Platform)

Toshiba (Intelligent Energy and Smart City)

Schneider Electric (Smart City Initiative)

Hitachi (Smart City Initiative)

Smart City Planning, Inc. (SAP, LG CNS, NEC, HP, etc.)

SMART EUROCITIES

Azamat Abdoullaev 2014

SMART EUROCITIES:

CONCEPTUAL REFERENCE FRAMEWORK

SMART EUROCITIES

Azamat Abdoullaev 2014

INVESTMENT AREAS

Smart Government and Intelligent Public Administration

Smart ICT, Optical Transportation, and Mobile Networks

Smart and Green Building and Sustainable Construction

Smart and Green Energy

Smart and Sustainable Water

Smart and Sustainable Waste

Smart Mobility and Green Transportation

Smart People and Knowledge Workers

Smart Economy, Business and Commerce

Smart Safety and Health

Smart Culture, Tourism, Education, Research and Innovation Funding for Sustainable Cities and Green Initiatives: “Using EU funding mechanism for smart cities”

http://ec.europa.eu/environment/europeangreencapital/about-the-award/policy-guidance/

SMART EUROCITIES

Azamat Abdoullaev 2014

SMART CAPITAL PROJECTS: INNOVATION ECO CORRIDORS

Eco-Smart Natural and Built Environment

Integrated Sustainable Infrastructure: intelligent ICT, low energy districts and sustainable mobility

Smart and Green Squares, Eco Parks and Open Spaces, Climate Streets and Eco Districts

Smart Mobility and Eco Transportation; Smart Energy and Distributed Energy Networks (RES&RGS)

Industrial Innovation Parks, Business Clusters, Knowledge Parks, Science & Technology Parks, Health Parks,

Biomedical Parks with Immortality Centers, Agriculture Technology Parks, Energy Parks, Server Farms, Eco

Farms, or ICT Parks

Seaport Development Parks (Coastal Eco Parks (large fishing ports, recreation zones and seaside touristic

facilities)

Environmental Protection Projects (Coastal Regeneration, marine parks, sea farms and large fishing ports

and recreational zones; Green Forestation, forest protection, large forest recreation areas; Water

Management and Flood Prevention, ground water replenishment, natural land and NATURA sites

conservation; Sustainable Sewer Construction)

Sustainable Urban and Rural Redevelopment

Local Eco Communities Cluster, Smart Property Developments

Cultural Sustainable Settlements (China Eco Towns, Russian Smart Villages, British Green Communities, etc.)

Territorial Eco Corridors

Green Transportation Network (connected eco mobility, bike lanes, public transit, pathways, nature trails,

European Path E4)

SMART EUROCITIES

Azamat Abdoullaev 2014

EU INVESTMENT PROGRAMS

EU Multiannual Financial Framework 2014-2020

European Commission: Lighthouse Smart Community Projects (Horizon 2020)

Smart and Green Polis will be presented as an active member of the EU Lighthouse Projects, inviting institutions, public

bodies, industries, city networks, and academia to proactively contribute to the cause.

To deploy smart city solutions across urban mobility; districts and built environment; and integrated infrastructures, the

concept of Smart City ”Lighthouse Initiatives” is to be implemented, requesting collaboration between the European

Commission, Member States and Industry, as well as cities and research institutions.

Over the next 7 years, a portfolio of at least 20 - 25 lighthouse projects is to be created: each with 6-10 cities (and partners),

with the potential for Europe-wide roll out – dependent on levels of commitment, and access to / creation of funds.

Source: European Innovation Partnership on Smart Cities and Communities - Strategic Implementation Plan 14.10.2013

http://eu-smartcities.eu/content/presenting-european-innovation-partnership-smart-cities-and-communities

Sustainable Urban Development Platform (ESIF):

In the new EU budget 2014-2020, at least 5% of the European Regional Development Fund will have to be used for sustainable

urban development. Based on a list of cities prepared by Member States in their Partnership Contract, the Commission will

establish an Urban Development Platform comprising 300 cities throughout Europe, which will stimulate a more policy-oriented

dialogue on urban development between the cities at European level and the Commission

Smart Eco Polis as a town implementing integrated and innovative actions for sustainable urban development to be included in

the Partnership Contract and the Operational Programmes to have the EU CSF Funding 2014-2020 benefits.

EUROPEAN INVESTMENT BANK: Multi-component loans

EIB’s multi-component, multi annual investment programmes using a single “framework loan”. This funds a

range of projects, usually by a national or local public sector body, most frequently regarding infrastructure,

energy efficiency/renewables, transport and urban renovation

SMART EUROCITIES

Azamat Abdoullaev 2014

INTELLIGENT GOVERNANCE SYSTEMS: SMART CLOUD PLATFORM + INTERNET OF EVERYTHING

The Smart Eurocity Cloud Platform

The Urban Internet of Everything is the cloud-networked

connection of people, processes, data, and things.

PEOPLE(PERSON, ORGANIZATIONS)

PROCESS (ACTIVITIES, SERVICES)

DATA (INFORMATION, KNOWLEDGE)

THINGS (BUILDINGS, MACHINES, DEVICES)

The i-City Operation Center is connected with thousands

of sensors and cameras spread throughout the cities, as

the city brain of the Urban IoE, in which M2M

technologies are vital to present intelligent data

analytics for city processes.

“Smart City“ Intelligent Platform is to integrate a

technology-centric (smart) level, an intelligent (people-

centric) level, and eco-sustainable level improving the

Urban Economy, Community Integration, Quality of Life,

and overall Sustainability.

$14.4 trillion of potential value at stake for the private

sector, IoE is a $19 trillion opportunity for businesses

and governments globally 2013-2022.

http://internetofeverything.cisco.com/

The Smart Cloud Platform (IBM or Cisco Powered)

www.ibm.com/smartcloud

SMART EUROCITIES

Azamat Abdoullaev 2014

INTEGRATING THE BEST PRACTICE SMART CITY PROJECTS ACROSS THE WORLD

SMART Eurocities Development Strategy implies all six dimensions to be merged and interrelated by the deployed Urban

Intelligent Management System: Smart People, Smart Economy, Smart Governance, Smart Mobility, Smart Environments, and

Smart Living

1. Smart Economy (Innovation, Productivity, Innovative Spirit, Intellectual Property, Entrepreneurship, Knowledge

Market/Industry, Openness)

Holyoke, Massachusetts; Kochi, India; Malta; Manado, Indonesia; Nanjing, China

2. Smart Environment (Natural Capital and Resources, Sustainable Resource Management)

Amsterdam, Netherlands; Burlington, Ontario; Dublin, Ireland; Dubuque, Iowa; Glasgow, Scotland, United Kingdom; Lyon,

France; Malaga, Spain; Peterborough, United Kingdom; San Diego, California; Shenyang, China; Santa Barbara, California;

Stockholm, Sweden; Sydney, Australia; Yokohama, Japan

3. Smart Governance (e-Participation, public/social services, transparency, political strategies and perspectives)

Chengdu, China; Edinburgh, United Kingdom; Matosinhos, Portugal; Syracuse, New York; Wilmington, North Carolina

4. Smart Lifestyle (Smart Living, Quality of Life)

Boise, Idaho; Houston, Texas; Johannesburg, South Africa

5. Smart Transportation (Smart Mobility, innovative, safe and sustainable transport systems and facilities)

Alameda County, California; Alcoa, Tennessee; Portland, Oregon; Southampton, United Kingdom

6. Smart Community (Social Cohesion, Unity in Community, Human Infrastructure, Interfaces, Integration)

Chattanooga, Tennessee; Dublin, Ohio; Eindhoven, the Netherlands; Issy-les-Moulineaux, France; Luxembourg; Queensland,

Australia; Stratford, Ontario, Canada; Windsor-Essex, Ontario, Canada; Skolkovo, Russia

. The EU Smart Communities and Cities Prototype: 3.0 City, from Dumb to Intelligent Cities. http://www.slideshare.net/ashabook/30-

cityeu-prototype; http://www.slideshare.net/ashabook/urban-europe; http://www.slideshare.net/ashabook/sustainable-city

http://eu-smartcities.eu/content/show-world-you-are-smart-city

SMART EUROCITIES Azamat Abdoullaev 2014

LIGHTHOUSE SMART POLIS PROJECT

The light house projects should look for creating partnerships between industries, academics and cities, empower citizens and

ensure the replicability of the solutions, ensure the funding from various sources. Therefore each project should:

Be realised in 2 – 3 cities or communities (light house cities or communities);

include industry, city planning authorities which should also reflect the view of the consumer organisations, research

community, local Small and Medium Size Companies (SMEs);

co-involve 2 - 3 follower cities i.e. cities willing to contribute to the process though the replication of solutions at the end of the

project and having access to the knowhow and results of the project and a privileged contact with the project's partners. The

involvement of the follower cities should be relevant (e.g. participating in definition of user requirements and methodology of

transferability of solutions, data collection etc.). The follower cities should aim at improving their energy performance or the

share of use of renewables (e.g. 60% reduction of primary energy for buildings, 20 - 30 % RES use for electricity as well as for

heating and cooling). EU geographical coverage conditions should be also applied.

Ensure that all proposed activities are a part of ambitious urban plan. These activities should also lead to the development of

integrated urban plans. The urban plan shall integrate buildings planning, energy networks, ICT, transport/mobility planning;

additional issues may be addressed as well if relevant for the city. These plans shall be submitted with the proposal as a

supporting document(s).

the funding for the other parts of the programme or initiative in which the lighthouse projects are embedded should be

secured from other sources, preferably private ones, but also other EU funding sources (European Structural and Investment

(ESI) funds for example), national or regional funding.

Projects should demonstrate and validate attractive business plans that allow large scale replication of fast economic recovery

in cities of varying degrees of economic conditions (from very poor to very rich), varying sizes but significant urban areas and

varying climatic conditions to ensure high impact and replication potential .

The industrial partners and municipality authorities should engage in replicating successful demonstration in their own and

other cities, notably 'follower cities'; the replication plans are compulsory and are part of the evaluation.

Consortia must have a clearly defined structure with roles and responsibilities properly spelled out for all involved entities.

SMART EUROCITIES

Azamat Abdoullaev 2014

EUROPEAN INVESTMENT BANK: SMART SUSTAINABLE CITY INVESTMENT PROGRAMS

EIB supports projects that make a significant contribution to growth, employment, regional cohesion and environmental

sustainability in Europe and beyond. Priorities are defined in Operational Plan:

Small and medium sized enterprises & mid-caps: the creators of 80% of new jobs

Regional development: to address economic and social imbalances

Innovation: promoting skills and innovation at every level

Trans-European Networks: linking Europe’s infrastructure, principally in transport

Energy: building competitive and secure supply

Environmental sustainability: including both climate action and investment in the urban and natural environment

Urban Environment

Urban renewal – improving the quality of life and aiding social cohesion

Heritage – preserving the social, architectural and historical fabric of towns and cities

Buildings – renovation and renewal

Infrastructure – promoting sustainable transport, energy, ICT etc.

Mobility – helping people move around while cutting noise and air pollution

Sustainable transport

Sustainable energy project advice, ELENA

Water: Water supply, Wastewater treatment and disposal, Coastal erosion, Flood control, Hydropower generation

Biodiversity; Forestry

Financing

EIB lends directly to major projects, > Euro 25m, or pass through intermediaries for smaller investments, < Euro 25m. Funding is also

channelled through: JESSICA: a programme to magnify the effect of EU Structural Funds for urban projects. JASPERS: assists new EU

Member States achieve grant financing under the Structural and Cohesion Funds

SMART EUROCITIES

Azamat Abdoullaev 2014

EUROPEAN INNOVATION PARTNERSHIP: SMART CITIES AND COMMUNITIES

http://eu-smartcities.eu/blog/eib-eip-smart-cities-financing

http://eu-smartcities.eu/blog/smart-superpowers-projects-states-powers-great-powers-and-hyperpowers

http://eu-smartcities.eu/blog/europe-sustainable-states-commitments-and-smart-nations-franchises

http://eu-smartcities.eu/blog/europe-sustainable-states-commitments

http://eu-smartcities.eu/blog/smart-cities-global-initiative

http://eu-smartcities.eu/blog/how-build-sustainable-cities-roadmap-mayors-city-managers-and-city-councils

http://eu-smartcities.eu/blog/what-not-smart-city

http://eu-smartcities.eu/blog/how-build-sustainable-cities-roadmap-mayors-city-managers-and-city-councils

http://eu-smartcities.eu/blog/what-not-smart-city

http://eu-smartcities.eu/blog/eu-urban-agenda-sustainable-cities-pilot-case-smart-limassol

http://eu-smartcities.eu/blog/smart-city-commitments-permanent-strategic-consultancy-group

http://eu-smartcities.eu/content/become-smart-nation-build-your-brand-name

http://eu-smartcities.eu/content/show-world-you-are-smart-city

http://ec.europa.eu/dgs/secretariat_general/eu2020/docs/intelligent_europe_center_en.pdf

http://www.cs.ucy.ac.cy/CIT2011/files/SMARTWORLD.pdf

http://www.eu-smartcities.eu/

SMART EUROCITIES Azamat Abdoullaev 2014

I-COMMUNITY CONSULTANTS AND DEVELOPERS

Dr Azamat Abdoullaev, Director

EIS Encyclopedic Intelligent Systems Ltd (Cyprus, EU)

Member of the European Innovation Partnership on Smart Cities and Communities

EIS Encyclopedic Intelligent Systems Ltd (Moscow, Russia)

http://www.slideshare.net/ashabook/eis-ltd Telefax: + 357 25 561 883

E-mail: EIP on Smart Cities and Communities’ Platform’s Website

smartcity@cytanet.com.cy; ontopaedia@gmail.com

Internet Sites: http://iiisyla.livejournal.com

ООО "Энциклопедические Интеллектуальные Системы“(Moscow/Russia)

Skolkovo Innovation Center Participant: http://community.sk.ru/net/1120292/

http://en.wikipedia.org/wiki/Azamat_Abdoullaev

HTTP://WWW.SLIDESHARE.NET/ASHABOOK/AZAMAT-ABDOULLAEV

I-COMMUNITY (WORLD, REGION, STATE, CITY) GOVERNANCE PLATFORM

http://www.slideshare.net/ashabook/encyclopedic-intelligence

http://www.slideshare.net/ashabook/encyclopedic-intelligence-24260973

http://www.slideshare.net/ashabook/encyclopedic-intelligence-global-marketing

http://www.slideshare.net/ashabook/encyclopedic-intelligence-big-science-and-technology

http://www.slideshare.net/ashabook/global-intelligence-26413485

http://www.slideshare.net/ashabook/iworld-25498222

SMART EUROCITIES Azamat Abdoullaev 2014

“SHOW TO THE WORLD THAT YOU ARE A SMART CITY”: THE FIRST DEADLINE IS APPROACHING BY 15 JULY

Are you on the right track to become a Smart City? It is said that the future of the world will be decided by the

quality of its cities, and it is expected that by 2020 over 40 urban areas will turn into Smart Cities.

However, the Smart Cities Global Initiative is concerned about the large variety of narrow technical visions,

models and approaches in which on many occasions “the push towards smart cities is being led by the

wrong people –technology companies with naïve visions and short term commercial goals–, while the

architects, planners and scientists often struggle to share their specific knowledge”.

That is why this initiative is looking for megacities, municipalities, communities or brand new cities that are

following a smart community development strategy aiming to unify all the city systems, services, operations,

activities, departments and agencies as a sustainable smart urban ecosystem.

The applications have to provide evidence that the city has potential capacity to take profit of the intelligent

resources offered through the Smart Cities Global Initiative. They also have to prove that their transformation

into a Smart City has a strong leadership and that it has strong intentions to invest intelligent and financial

capital into smart and sustainable urban development.

The selected urban entities will be provided with intelligent property investment as well as sustainable city

exclusive education and training.

You can submit your applications via e-mail …at smartcity@cytanet.com.cy until the 15th of July.

For further information on the Smart Cities Global Initiative, consult the online brief guide.

http://eu-smartcities.eu/blog/smart-cities-global-initiative

http://eu-smartcities.eu/content/show-world-you-are-smart-city

SMART EUROCITIES

Azamat Abdoullaev 2014